Crude Oil Pressured By Weaker Economic Outlook With Tight Supplies

Crude oil is slightly up while little changed to Friday’s session as the market bounced back from the high in the European trading session. The price trades around $85 per barrel as investors are concerned about the weaker economic outlook and tight supplies.

  • High inflation, tight financial conditions, Russia – Ukraine tensions, and Covid pressure the demand for oil and the price.
  • Aggressive global tightening with rising interest rate hikes supporting the dollar as commodities getting bearish pressured.
  • Prices might be supported by the production cuts from OPEC, including Russia.
  • European embargo on Russian oil might be supportive of the oil price by lower supply.

The day’s perspective testing the lower value extreme of the Quarter’s and Year’s developing value area for buyers as the market plunged about 3.9% in Friday’s session.

(Click on image to enlarge)

crude oil daily

Calculations for the day fundamental combined with the technical factors are pointing to the upside for the very moment as the hourly interval dropped to the swing lows for potential absorption with a bullish swing failure, depending on the further auction around the lows the market may lift to towards the day’s highs.

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